FRC Denies Disapproving CBN’s 2012 Financial Report

19 Jul 2013

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 Mr. Jim Obazee,  Executive Secretary, FRC

Obinna  Chima

The Financial Reporting Council (FRC)  Thursday denied a report that it refused to approve the 2012 financial report of the Central Bank of Nigeria (CBN).

The council also said the fund raised for the proposed International Financial Reporting Standard (IFRS) Academy was intact, even as it insisted that the contributions made by organisations under its supervision will not in any way affect its regulatory functions.

The Chief Executive Officer/Executive Secretary, FRC, Mr. Jim Obazee, said this while addressing journalists in Lagos.

THISDAY had report that the FRC recently objected to 22 items in the CBN 2012 annual report, thereby not giving an approval to the bank’s financial statement for last year.

But Obazee said: “The financial report of entities including that of the CBN is approved by the Governing Board of the organisations. The FRC does not approve accounts. Section 8 (d) of the FRC Act requires preparers of financial statement to send their financial statements to the FRC within 60 days after approval by their own board.

“The FRC does not petition people, we look at the financial statements they send to us and review it.”

He maintained that role of the council was to request for financial statements and when the document is submitted, the FRC reviews it to see if it is in compliance with the stipulated standard and if it not, “we will then point it out.”

Obazee however said: “We have received the CBN report. It just got to us and because we have due process in the office, it is not a priority agenda.  We will definitely look at the details of the account that was submitted because Section 11 (b) of the FRC Act says we are to give guidance on issues relating to financial reporting and corporate governance to Section 2 listed on the Act which are those bodies that form the governing board of the FRC.

“The CBN has not been stopped from publishing its accounts and they can go ahead and publish it. In fact, we are also looking forward to a published copy of the financial statement of the CBN.”

Speaking on the funds raised for the IFRS Academy, Obazee said: “We have gotten approval from the office of the Accountant General to open two special accounts dedicated for that purpose. So it will not be an account meant for the FRC, but for the IFRS Academy.  The money will be utilised when you have the board of trustees for the Academy. The accounts are in Access Bank and Zenith Bank.

“It was just a project that they organisations looked at and said that it was a laudable thing that they should support. The money is kept intact, the board of trustees needed to be inaugurated and you can’t go into that if you have not gotten those that will teach in the school, if you have not gotten memorandum of understanding (MoU) on the temporary site that you are to use, that is why the money is kept there.”

Tags: Business, Nigeria, Featured, FRC, CBN, Financial Report

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